Kent stepping down at Close

ROD Kent, chief executive of Close Brothers, is to step down in the autumn from the billion-pound City investment bank which is largely his creation. With the recent retirement of Brian Winterflood, whose market-making firm of the same name is one of Close Brothers's most successful investments, the bank will have lost three of its most high-profile figures within a few months. John Llewellyn-Lloyd, 42, head of corporate finance for six years, left at the end of December.

Kent, 54, was part of Close's management buyout in 1979 but has worked there more than 28 years. As rivals were taken over by American and European banks, Close picked up teams of specialists who preferred the more intimate, client-focused scale of the bank. It developed rapidly in the 1990s. Profits grew without interruption and by the end of the decade it was the largest independent British-owned investment bank in the City.

Profits fell for the first time last year but today Close revealed a slight recovery in the six months to the end of January, with profits rising to £34.1m from £33.5m. That is still a year-on-year fall of 40%. But Kent argued that as the business is not seasonal the consecutive halves comparison is the more meaningful. The interim dividend is unchanged at 9p on earnings down 35% at 18.6p.

Kent hands over to Colin Keogh, who heads asset management and formerly ran corporate finance. He will be supported by two managing directors, finance director Peter Winkworth and banking chief Stephen Hodges. Chairman Sir David Scholey described this as a seamless handover and added: 'The immediate outlook for banking is good but for the other three divisions it continues it to be unclear.'

Kent said he was particularly pleased at the way the group had increased the amount of funds under management from £3.1bn to £3.3bn in the second half when many fund managers had been suffering. He said: 'When ordinary equity funds suffer it highlights the attractions of some of our specialist funds such as property and private equity.'

Kent owns almost £3m of Close shares and last year was the highest paid director, receiving a total of pay and bonus worth £1.53m, up from £884,000 in the year to July 2000. He has no immediate career plans but said: 'Don't write me off yet.'